Why Brexit and Hong Kong protests don't have a 'major effect' on the US economy: investment adviser

The trade war between the U.S. and China is taking a backseat this week as investors are looking at other global factors moving markets.

The U.K. is enduring a tumultuous party divide as newly appointed Prime Minister Boris Johnson lost a key vote in the House of Commons on Tuesday including the votes of members of his own Conservative party. The members who oppose Brexit are now fighting for a delayed vote to early 2020 and to avoid a “no-deal” resolution.

In other global news, Hong Kong’s chief executive Carrie Lam announced that the government would withdraw the extradition bill that sparked months of protests in the city that resulted in the international airport being shut down.

This news has some investors worried about the effects of geopolitical turmoil, while others aren’t convinced it will make a big impact. Ryan Payne, president of Payne Capital Management, told Yahoo Finance that U.S. investors don’t have much to worry about when it comes to the global markets affecting U.S. investors.

“I think the one thing we don't focus enough on is we're very insulated as an economy in general. We only export a very small percentage of our GDP to the rest of the world,” Payne said. “Europe's done terrible here relative to the U.S., and it really hasn't affected us. These tariffs we are talking about, they're a very small percentage of global GDP, U.S. GDP. So really, it doesn't have a major effect on our economy.”

Globally, investors are encouraged with the both Asian markets and the pound on an upswing. Payne told Yahoo Finance that the current climate overseas is creating great value and U.S. investors should expand their portfolios if they want bigger dividends.

“I think the U.S. right now is the best game in town, but if you think longer term, you've got to look at where valuations are cheaper. So you have to look at Europe. You have to look at the emerging markets, and growth rates are going to be faster than they are in the US,” Payne said.

Ashley is a Production Assistant for Yahoo Finance. Follow her on Twitter @actuallynelson